Prudential Bancorp, Inc. Of Pennsylvania Announces Fourth Quarter And Fiscal Year Results
For the quarter ended September 30, 2010, non-interest expense decreased $361,000 compared to the same period in the prior year, while non-interest expense decreased $271,000 for the year ended September 30, 2010 compared to the same period in the prior year. The decrease for the three month period ended September 30, 2010 was primarily related to the reduction in expenses associated with the writedown of real estate owned properties during the 2009 period. These expenses were $886,000 for the quarter ended September 30, 2009 and decreased to $51,000 for the quarter ended September 30, 2010. This decrease in real estate owned expense was partially offset by increases in salaries and employee benefits in the 2010 period. The decrease for the year ended September 30, 2010 was primarily related to the decrease in the expenses associated with the writedown of real estate owned properties during the 2009 period. These expenses were $1.1 million for the year ended September 30, 2009 and decreased to $414,000 for the year ended September 30, 2010. Also contributing to the decrease was a reduction in professional services fees. These decreases were partially offset by increases in salaries and employee benefits in fiscal 2010.
The Company recorded income tax expense of $131,000 and $1.0 million for the quarter and year ended September 30, 2010, respectively, compared to a tax benefit of $69,000 for the quarter ended September 30, 2009 and income tax expense of $350,000 for the year ended September 30, 2009. Income tax expense increased during the 2010 annual period as net income increased. The fluctuation in income tax expense recognized during the periods was due in part to the valuation allowance established in connection with the writedown of certain of the mortgage-backed securities received in the redemption of the mutual fund. A valuation allowance was recorded against the deferred tax asset created by the sale of the mutual fund and the losses recognized on the mortgage-backed securities as capital losses are only deductible to the extent of capital gains. The valuation has been adjusted as unrealized gains on capital assets have increased which are anticipated to be used to offset capital losses.
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